German battery manufacturer Lion Smart has sealed a significant agreement with Chinese cell manufacturer SVOLT, marking a strategic move towards its next-generation battery packs. The collaboration intends to incorporate SVOLT's advanced NCM and LFP battery cells into Lion Smart's offerings, with an eye on delivering enhanced energy capacity and competitive pricing to both mobility and stationary markets.
Lion Smart recently announced its plan to commence supplying battery packs featuring SVOLT cells to customers in the latter part of 2024. To expedite market entry, initial cell imports will originate from an SVOLT factory in China. However, the partnership envisions a shift towards intra-European cell production starting from 2025. The joint effort will kick off immediately with the development of tailor-made SVOLT cells catering to Lion Smart's specific requirements.
Winfried Buss, CEO and Managing Director of Lion Smart Group, stated, “The adoption of these cutting-edge cells with the latest chemistry enables us to diversify our product portfolio, effectively addressing both mobility and storage sectors. Notably, our mobility clients can expect around 20% more energy within the same package, while stationary market customers will benefit from increased charge cycles and competitive pricing for battery packages.”
Presently, Lion Smart is in the process of establishing the first iteration of its battery packs at its production facility in Hildburghausen, located in southern Thuringia. The facility, inaugurated in June, signifies a significant investment by the company, moving production from Lower Bavaria to this new location. The factory's yearly capacity is projected at approximately 4.8 million battery cells assembled into packs, equivalent to 200 packs daily or 50,000 annually across three shifts.
Lion Smart, a subsidiary of Swiss holding company Lion E-Mobility AG, primarily offers the Lion SE09 high-voltage battery for mobile and stationary applications. The assembly process is highly automated, reflecting the company's commitment to efficient manufacturing. Among its clientele is Vicinity Motor, a Canadian manufacturer.
Alessio Basteri, President of the Supervisory Board of Lion E-Mobility AG, articulated, “This partnership aligns with our strategic vision of evolving into a prominent battery pack manufacturer. Building upon the foundation of the SE09 Battery and the successful establishment of in-house production, collaboration with a top-tier global cell supplier will enable us to incorporate cutting-edge battery cell technology into the LION Smart SE09 Battery pack. This advancement will pave the way for attracting new customers and driving the company's growth in the coming years.”
SVOLT, an offshoot of the Chinese automaker Great Wall, has ambitious plans for Europe, with five battery cell factories on the horizon. Two of these are confirmed for Germany. The company's target is to achieve a total production capacity of at least 50 gigawatt-hours in Europe by the close of the decade, reinforcing its commitment to the region's burgeoning electric vehicle ecosystem.